Policy and Procedures Concerning the Use of Airport Revenue

On February 26, 1996, the FAA published for public comment, a comprehensive statement of policy and procedures concerning the use of airport revenue, based on the requirement that revenue at public airports have received Federal grants generally be used only for airport purposes. Comments received on the notice included comments on four issues not discussed in detail in the February notice: (1) The use of airport property and funds for community or charitable purposes; (2) the extent to which airport funds may be used for marketing and promotional activities; (3) guidance on the accounting and cost allocation practices that the FAA considers acceptable for purposes of compliance with the revenue retention requirement; and (4) the use of airport property for public transportation facilities. This supplemental notice proposes additions to the policy proposed in February 1996 to include specific policies and guidance on these four issues, based on comments received. The final policy will reflect comments received on this supplemental notice as well as the general notice published in February. While the policy statement proposed is not made effective at this time, statutory requirements relating to the use of airport revenue remain in effect and will be enforced by the FAA. Airport sponsors may assume that the FAA would act consistently with the views expressed in this document in any enforcement action for revenue diversion taken before a final policy statement is issued.